Australia flags democracies’ trade swing from China to India

Authored by apnews.com and submitted by frrrrrro
image for Australia flags democracies’ trade swing from China to India

FILE - In this Nov. 18, 2014, file photo, India's Prime Minister Narendra Modi, left, waves as he is escorted by Australian Prime Minister Tony Abbott as they leave the House of Representatives at Parliament House in Canberra, Australia. An India-Australia free trade agreement would signal the "democratic world's tilt away from China," trade envoy and former Australian Prime Minister Tony Abbott has written on Monday, Aug. 9, 2021. (AP Photo/Rick Rycroft, Pool, File)

CANBERRA, Australia (AP) — Australian special envoy and former Prime Minister Tony Abbott said a free trade agreement between his nation and India would signal the “democratic world’s tilt away from China.”

Abbott visited New Delhi last week as Australia’s special trade envoy for India as the Australian government gives priority to sealing a bilateral trade deal.

In an opinion piece likely to anger Beijing that that was published in The Australian newspaper on Monday, Abbott said the “answer to almost every question about China is India.”

“With the world’s other emerging superpower becoming more belligerent almost by the day, it’s in everyone’s interests that India take its rightful place among the nations as quickly as possible,” Abbott wrote.

“Because trade deals are about politics as much as economics, a swift deal between India and Australia would be an important sign of the democratic world’s tilt away from China, as well as boosting the long-term prosperity of both our countries,” Abbott added.

Abbott was prime minister when China and Australia finalized a bilateral free trade deal which took effect in 2015. He also hosted a state visit by Chinese President Xi Jinping a year earlier.

Relations have since soured over issues including Australia banning Chinese telecom giant Huawei from major communications infrastructure projects, outlawing covert foreign interference in Australian politics and calling for an independent investigation into the origins of the COVID-19 pandemic.

Abbott accused Beijing of “capricious boycotts” of Australian exports including coal, barley, wine and seafood that demonstrated Chinese use of trade as a “strategic weapon.”

“The basic problem is that China’s daunting power is a consequence of the free world’s decision to invite a communist dictatorship into global trading networks,” Abbott said.

“China has exploited the West’s goodwill and wishful thinking to steal our technology and undercut our industries; and, in the process, become a much more powerful competitor than the old Soviet Union ever was, because it’s now a first-rate economy that’s rapidly developing a military to match; and spoiling for a fight over Taiwan, a pluralist democracy of 25 million that’s living proof there’s no totalitarian gene in the Chinese DNA,” Abbott added.

The Chinese Embassy in Australia did not respond to a request for comment on Monday.

Negotiations between India and Australia on a Comprehensive Economic Cooperation Agreement began in 2011 but were suspended in 2015.

India is particularly concerned by freer trade in Australian farm exports. New Delhi’s demands for less restrictive visas for Indian workers is a major sticking point for Australia.

Australia’s current Prime Minister Scott Morrison and his Indian counterpart Narendra Modi last year upgraded the bilateral relationship with a raft of agreements that strengthened defense ties and committed both nations to expanding trade.

Abbott visited India last week to “propel our economic relationship to its full potential, to the mutual benefit of the Indian and Australian people,” Australian High Commissioner to India Barry O’Farrell said in a statement.

EarlHammond on August 10th, 2021 at 12:41 UTC »

I mean Tony nailed it on the head:

“The basic problem is that China’s daunting power is a consequence of the free world’s decision to invite a communist dictatorship into global trading networks” Abbott said.

“China has exploited the West’s goodwill and wishful thinking to steal our technology and undercut our industries; and, in the process, become a much more powerful competitor than the old Soviet Union ever was, because it’s now a first-rate economy that’s rapidly developing a military to match; and spoiling for a fight over Taiwan, a pluralist democracy of 25 million that’s living proof there’s no totalitarian gene in the Chinese DNA,” Abbott added.

Nixon's Chinese rapprochement seems increasingly like a mistake as time goes on.

3rdOrderEffects on August 10th, 2021 at 12:22 UTC »

Here is the original op-ed by Tony Abbott that this article is based on

https://theaustralian.com.au/commentary/india-the-sensible-substitute-for-belligerent-beijing/news-story/2d7940c990e38bb4c4574c38c2c45e79

The main specific focus of the article is on trade and mainly getting an Australia-India trade deal that reduces tariffs and promotes privatization.

India indeed is promoting privatization to some extent but it still has high tarrifs and a protectionist approach to trade in many sectors. The would have to change to maximize trade.

Another specific information from this article is that India and Australia will sign an early harvest agreement before 2022

Early harvest scheme is a precursor to a free trade agreement (FTA) between two trading partners. This is to help the two trading countries to identify certain products for tariff liberalisation pending the conclusion of FTA negotiation. It is primarily a confidence building measure.between two trading partners

So the fully fledged FTA is still going to take a lot more time

India is currently our seventh-biggest trade partner with annual two-way trade of about $30bn, despite being hampered by tariffs and mutual perceptions that neither country is always a good place to do business. After 10 years of green obstruction and lawfare, the Adani mine is finally about to export its first coal from Queensland to India, yet that will attract a 2.5 per cent tariff, despite being Indian-owned and operated. There’s a whopping 150 per cent tariff on Australian wine exports to India and a range of tariffs on Australian wool exports to India, despite the fact that much of it is then re-exported to Australia and the wider world as high-quality Indian textiles. Then there’s a double taxation agreement that anomalously raises $35m a year by taxing here in Australia online services delivered from India, unlike with other countries.

Both countries are now boosting their negotiating teams with a view to having an “early harvest” trade agreement at least by the end of the year, as a big step towards a much deeper partnership. India is already Australia’s second-largest (by far) source of foreign students but this should be more of a two-way street. Australia could readily replace China as a key source of the rare earths and other strategic minerals that India will need, under PM Modi’s “Make in India” program, if it’s to replace China as a source of manufactured inputs at scale. With a spectacular infrastructure program now under way, as well as sweeping privatisation, India should be a place for Australian investment funds to secure long-term stable returns.

frrrrrro on August 10th, 2021 at 11:00 UTC »

Submission Statement: Australian special envoy and former Prime Minister Tony Abbott said a free trade agreement between his nation and India would signal the “democratic world’s tilt away from China.” Abbott visited New Delhi last week as Australia’s special trade envoy for India as the Australian government gives priority to seal a bilateral trade deal. In an opinion piece likely to anger Beijing that that was published in The Australian newspaper on Monday, Abbott said the “answer to almost every question about China is India.” “With the world’s other emerging superpower becoming more belligerent almost by the day, it’s in everyone’s interests that India take its rightful place among the nations as quickly as possible,” Abbott wrote.